Sheffield based accountancy firm Hart Shaw is encouraging business and home owners to give greater consideration to capital gains tax (CGT) when selling.
The message comes after new figures show that the amount of CGT being collected by the government is growing at a rate of 43 per cent per year; one of the fastest areas of revenue growth for the Treasury.
According to the latest government figures, in 2013-14 the total amount of CGT collected rose to £5.5 billion; up from £3.4 billion in 2012-13.
The increase is believed to be due to further rises in the value of shares and property, as well as an increase in turnover for investments subject to CGT. In recent years HM Revenue & Customs (HMRC) has also become more vigilant in identifying those who have a liability through various targeted campaigns.
Basic-rate taxpayers pay CGT at a rate of 18 per cent, while higher and additional-rate taxpayers pay a rate of 28 per cent, which is offset by an annual CGT allowance. This is currently £11,100 for individuals and £5,500 for trusts.
Steve Vickers, Tax Partner at Hart Shaw, said: “The increase in CGT is not surprising considering the increase in the value of property and shares, stricter monitoring by HMRC and a number of other changes that have contributed to a larger tax take.
“However, there are still options available to individuals and businesses who wish to reduce their CGT tax bill, including reliefs such as entrepreneur’s tax relief which is available to many business and company owners.”
Steve added that it was important that individuals and businesses sought professional advice to reduce their tax liabilities, as there could be savings to be made.
For more information Steve can be contacted on 0114 251 8850 or steve.vickers@hartshaw.co.uk.